Many different factors make a property attractive to tenants such as facilities, amenities and price. Too often, unsophisticated owners think price is the number #1 driving factor for why tenants lease office space, when it rarely is. There are 6 basic keys to landlord representation success that contribute to fully leased assets.
1. Know your competitive set.
To gain a winning advantage, you must know your competition intimately. This holds true in sports, politics and, of course, in the world of commercial real estate. Knowing what’s happening in the region and neighbourhood allow a deeper understanding of the forces currently at play.
2. Positioning matters.
Property positioning makes all the difference in the income it will produce and its appeal and value to future tenants and buyers. It pays to spend some time on strategy. Those who understand the value of positioning an asset will enjoy rental premiums and faster uptake of leased office space.
Consider how co-working spaces have managed to position themselves as premium office space that yield many times the returns of established executive offices or traditional office suites, disrupting what agents and lenders thought they knew about the
industry. This wasn’t just by offering modern design and cheaper rents; they offer community and tangible value of increased visibility to business owners.
3. Never miss a prospect.
Colliers Canada boasts the best Customer Relationship Management Database in the industry. This is not just a fancy contact list, this is a game-changing piece of technology that increases leads, closes more deals faster, and drives customer loyalty and satisfaction. Colliers Canada is committed to exceeding clients’ expectations.
4. Mix well and form into clusters.
Positioning an industry together in a defined area offers readily understood operational advantages. This is far from a new phenomenon. But having a geographical concentration of an industry offers interconnected business, suppliers, and associated
institutions an increase in productivity, drives innovation and stimulates new businesses. By forming clusters of related tenants, building(s) become a community and destination.
5. Minimize risk.
The commercial real estate market is still prime for expansion, but risks remain. It’s critical for landlords to proactively put a risk-management program in place to minimize exposures. By having the right team of advisors that includes a commercial real estate agent, is vital for proper due diligence, staggered lease renewal dates and knowing your market to mitigate the risks.
6. Today’s lease has a ripple effect on tomorrow’s investment.
The lease that is signed today effects the future, especially NOI. A discounted rental rate draws bargain renters, increases exposure and lowers investment growth.
Tenants today want branding, image and location. Investors want positive cash flow, strong tenant covenants and growing NOI year over year. Some areas are ripe for rental increases with moderate investments made to remodelling and rebranding. By investing
wisely you’ll see rental rates increase causing property values to rise, stronger tenancies which will result in a reduction of tenant turnover.
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